The Effect of Product Quality, Price Perception and Promotion on Customer Satisfaction and its Impact on Customer Loyalty of PT Makmur Jaya Agro Pesticides

This study aims to determine the direct effect of Product Quality, Price Perception and Promotion on Consumer Satisfaction of PT Makmur Jaya Agro's pesticides, as well as to determine the indirect effect of these variables on Customer Loyalty through Customer Satisfaction. As many as 160 respondents of PT Makmur Jaya Agro's pesticide consumers who came from the Subang Regency area were the objects of this study. The research model used the Structural Equation Model (SEM) with the help of analysis tools SPSS Version 26 and Lisrel Version 8.30. The results showed that Product Quality, Price Perception and Promotion had a positive and significant effect on Customer Satisfaction. Customer Satisfaction is an intervening variable dependent on customer loyalty where Product Quality, Price Perception and Promotion have a positive and significant effect on Customer Loyalty through Customer Satisfaction. This research can be useful for companies to identify, plan and manage steps and policies to increase Customer Satisfaction and Customer Loyalty..


Introduction
Indonesia is an agricultural country where most of the population work in fields related to agriculture, according to BPS data in 2019 showing that more than 27% of the population in Indonesia works in the agricultural sector or related to agriculture. In addition to providing a sizable contribution to Indonesia's national income, some of Indonesia's exports also come from the agricultural sector, so that the agricultural sector has an important role in absorbing labor and providing food and clothing needs for the population (Wibowo, 2012) In agricultural cultivation, which emphasizes increasing productivity, the use of pesticides is a necessity that cannot be avoided by farmers.
Pesticides are needed to control the attack of plant pests so that plants can produce optimally.
The current technological developments in the field of pesticides are encouraging competition between companies to become stronger. Each company will make every effort to ensure the sustainability of its market share. Product innovation with the same good quality will indirectly confuse consumers in making choices to buy the product. One of the losses that will be experienced by the company due to this condition is that the company will lose consumers in the Open Access Indonesia Journal of Social Sciences http://journalsocialsciences.com/index.php/OAIJSS future or the company's consumers will move to another company, of course this will be detrimental to the company because it will reduce the profits obtained.
The pesticides business is a very big and attractive business. Until now, the pesticide business is still controlled by international companies, including Bayer, Syngenta, BASF, Nufarm, Dow Agrooscience and several other companies with 2019 resistant sales value of more than 600 trillion rupiah (Agrinews, 2020).
PT Mamkur Jaya Agro is a pesticide producer that produces several types of pesticides, both insecticides, fungicides, herbicides and other types of pesticides. To be able to compete with other pesticide producers, PT Makmur Jaya Agro needs more effort, given the limited capital and information at the farmer level.
To be able to survive in the competition, companies are required to better understand the needs and desires of consumers. A good marketing concept is also needed to create loyal consumers so that they do not switch to other pesticide producers. According to Suyanto (2002), the marketing concept states that the key to achieving company goals is satisfying the needs and desires of consumers.
The activities of a company do not end only with the occurrence of transactions, it further tries to make the product satisfying consumers and able to compete with other similar products.
This requires companies to be able to compete in producing goods as well as possible according to consumer desires. So it is clear that marketing is very important for companies, especially in the current era of economic globalization which is also very influential in marketing activities.
Economic globalization seems to no longer recognize boundaries between countries which cause all activities to take place quickly and precisely, through marketing, production products can be introduced and purchased by consumers (Alma in Haryani, 2006).
Consumer purchasing decisions are important because they are the main goal of the company in creating a marketing strategy. Purchasing decisions by consumers are directly related to company profits. According to J Paul Peter and Jerry C, Ollson (2000) consumer decision making is an integration process that combines knowledge to evaluate two or more alternative behaviors, and choose one of them. The result of this integration process is a choice that is presented cognitively as a desire to behave, the desire to behave is a plan to engage in several behaviors. There are many factors that influence consumer purchasing decisions including product quality, perceived price and promotion.
Furthermore, the perception of price and product quality are the main things that concern consumers before making a purchase, they

Marketing mix
The marketing mix or marketing mix is an element of a company organization can be controlled by the company in communicating with consumers and for satisfy consumers. In marketing there is a marketing mix (Zeithaml and Bitner, 2008), whereas according to Kotler and Amstrong (1997), the marketing mix is a device controllable tactical marketing tools, product, price, distribution or place, and promotions that are combined by the company to produce the desired response in target market.
The marketing mix consists of everything a company can do for affect the demand for its products. It can be concluded that the meaning of the marketing mix (marketing mix), according to the author, is a combination of the four core forming variables a marketing system where each variable can be controlled and used by companies to influence target market demand.
Marketing mix can also said to be a tool or way for companies to achieve marketing goals.
Many marketing mix strategies include: 1) market segmentation, which is the act of dividing

Product quality
Product quality includes efforts to meet the needs or expectations of consumers and quality is a condition that is always changing (which is considered current quality may be less quality in the future). Quality is a product characteristic or characteristic in order to meet consumer needs and expectations (Tjiptono, 2016). According to Saleleng et al (2014)    According to Zikmund in Gaffar (2007), there are factors that affect customer loyalty, namely: 1) Satisfaction, customer satisfaction is a measurement of the gap between customer expectations and the reality they receive or feel; 2) Emotional Bonding, consumers can be influenced by a brand that has its own appeal so that consumers can be identified in a brand, because a brand can reflect the characteristics of these consumers. A bond that is created when a consumer feels a strong bond with another consumer who uses the same product or service; 3) Trust, the willingness of someone to entrust a company or a brand to perform or carry out a function; 4) Ease (Choice Reduction and Habit), Consumers will feel comfortable with a product quality and brand when they are easy to make transactions. Customer Loyalty, such as regular product purchases, is based on accumulated experience at any time; 5) History With The Company, a person's experience of the product can shape behavior.  (Djojosumarto, 2008).

Method
Data collection was carried out by distributing questionnaires to pesticide customers who purchased pesticides at PT Makmur Jaya Agro.
Respondent data collected were 160 farmers who bought pesticide products.

Data analysis method
Reliability test is an index that shows the extent to which a measuring instrument can be trusted or reliable. Reliability shows the extent to which the measurement results remain consistent if done 2 (two) times or more on the same symptoms with the same measuring device (Umar, 2010 The data obtained will be processed using a computer data processing program, namely SEM Satisfaction also depends on product quality.
Quality is the totality of features and characteristics of a product or service that depends on its ability to satisfy stated needs.
Product or service quality and customer satisfaction are closely related. Quality is the main key to creating value and customer satisfaction. The higher the quality level of a product, the higher the level of customer satisfaction (Kotler and Keller, 2016)

Direct effect of price perception on customer satisfaction
The results of the data analysis obtained show that the t value is 17.22, the t value is greater Companies in the business of marketing goods or services need to set the right price. According to Kotler and Armstrong (2001) that price is the amount of money charged for a product or service, or the amount of value that consumers exchange for the benefits of owning or using the product or service. Price perception is often an indicator of value when the price is related to the perceived benefits of a good or service which at a certain price level when the benefits felt by consumers increase, the value will also increase.
Likewise, at a certain price level, the value of a good and service will increase along with the increase in perceived benefits.
Zakaria and Astuti (2013)  to Manus and Lumanauw (2015), price has an important role in the decision-making process, namely the role of the allocation of prices is to help buyers to get products or services with the best benefits based on their purchasing power.
Based on this information, it can be understood that the price is the amount of money needed to obtain a statement of the value of a product or service in accordance with the quality and benefits provided by being influenced by psychological factors and other factors that affect the price itself.

Direct effect of promotion on customer satisfaction
In general, promotion is defined as a one-way flow of information or persuasion designed to direct a person or organization to actions that create exchanges in marketing (Swastha, 2007).
Promotion is a marketing mix that focuses on efforts to inform, persuade and remind consumers of the company's brands and products. According to Kotler and Armstrong (2011) promotion is an activity that communicates product excellence and persuades target customers to buy it.
The results of data analysis show that the t value is 19.16, the t value is greater than t table 1.96, which means that there is a significant influence between Promotion and Consumer Satisfaction. The coefficient is 0.73 and has a positive value, it means that the increase in promotion will be able to increase customer satisfaction. So that the hypothesis that increases the promotion will be able to increase consumer satisfaction is accepted. An increase in promotional activities by 1 point will increase Customer Satisfaction by 10.73 points.
The purpose of promotion is to increase sales and company profits. In a competitive business the company must do the best possible promotion, without advertising the company will lose its market share (Manullang, 2008).
Promotional activities that can be carried out by the company, among others, are through advertising, sales promotion, personal selling / personal selling, and publicity. Companies that can promote well will be better known to consumers and increase customer satisfaction.
According to Kotler and Armstrong (2014: 27) that "Marketing as the process by which companies create value for customers build strong customer relationships in order to capture value from customers in return ". The purpose of this definition is that marketing is a process by which the company creates value for customers and builds strong customer relationships to capture customer value in return. According to Kotler and Keller (2012: 498)  The results of data analysis show that the t value is 14.80, the t value is greater than t table 1.96, which means that there is a significant influence between Customer Satisfaction and Customer Loyalty. The amount of the coefficient is 0.94 and positive means that the increase in customer satisfaction will be able to increase customer loyalty. So that the hypothesis which shows that the increase in customer satisfaction will be able to increase customer loyalty is accepted. An increase in Customer Satisfaction by 1 meal point will increase Customer Loyalty by 0.94 points.
The research results obtained are in line with Kotler's (2003: 40)  Indirect effect of product quality on customer loyaitas through customer satisfaction According to Kotler and Armstrong (2004), according to the product concept, a consumer will like a product that offers the best quality, performance and best characteristics. This is in accordance with the results of previous studies conducted by Mangore et al. (2015), that the increase and decrease in customer loyalty is influenced by the increase and decrease in the quality of the products offered, consumers will feel satisfied if the quality products offered. This is in line with research conducted by Kurniawati et al. (2014), that product quality has a significant effect on customer loyalty. Based on the theory of Robinette (2003: 13) which states the factors that affect customer loyalty, namely attention (carring), companies must be able to see and overcome all the needs, expectations, and problems faced by customers.
With that attention, customers will become satisfied with the company and make repeat transactions with the company, and in the end they will become loyal company customers; trust Price is an important factor for consumers as a consideration for consumers in consuming a product or service (Kotler, 1994  for Darbost brand t-shirts (Adnyana, 2021).

Effect of product quality on customer loyalty through customer satisfaction
The results showed that product quality

Conclusion
1. Product quality directly has a positive and significant effect on customer satisfaction.
PT. Makmur Jaya Agro, the better the quality of the pesticide product, the higher the consumer's satisfaction.
2. Perceived price directly has a positive and significant effect on consumer satisfaction at PT Makmur Jaya Agro. The higher the perception of pesticide product prices, the higher the consumer satisfaction.
3. Promotion has a positive and significant effect on consumer satisfaction of PT Makmur Jaya Agro's pesticide products.
The bigger the promotion, the higher the customer satisfaction.